Tuesday, January 21, 2014

Civic body proposes to scale down LBT target for financial year 2013-2014

The target of local body tax (LBT) for the financial year 2013-2014 for Navi Mumbai Municipal Corporation is more than the previous year.
The Navi Mumbai Municipal Corporation’s (NMMC) Cess department has forwarded the proposal to the state government to reduce tax to 1.5%, but it hasn’t been approved yet.

When asked, an LBT officer, requesting anonymity said, “We have LBT for 2%, 3%, and 7% as of now, we do not know when it will get converted to 1.5%.” Agricultural products have been given exemption of 0.2% and other export materials, too, have received exemption.

Industrial items, steel and iron have 2% tax, whereas electronic gadgets, alcohol have 3% tax and wine has 7% tax.The officer added, “There had been a discussion between the commissioner, Naik and the deputy commissioner regarding LBT, keeping all the issues in mind.”

The target set for the year 2013-2014 is Rs855 crore, but they achieved Rs505.15 crore between April to December i.e. 41% tax yet to be achieved with less than three months to go.The outstanding of Rs70 crore has been recovered from the old outstanding, which is included in the value of nine months’ recovery and the remaining outstanding will be recovered soon.

The target for the year 2012-2013 was Rs500 crore and they achieved Rs420 crore i.e. 16% lesser amount was achieved.

Sudhir Cheke, the deputy commissioner of LBT said, “I have forwarded one recommendation to reduce the target from Rs855 crore to Rs700 crore as it is not possible to complete the target in next two months. If the figure is reduced to Rs700 crore,we will be able to inch closer to the target easily.”

He added, “The recommendation was given on local taxes by former chief secretary of the state, Subodh Kumar, before his retirement, but now he has new proposals.”

Source : http://www.dnaindia.com/mumbai/report-navi-mumbai-civic-body-proposes-to-scale-down-lbt-target-for-financial-year-2013-2014-1955071